A new price chart comparing Bitcoin (BTCUSD) with the US Consumer Price Index (CPI) could suggest that BTC is a leading indicator for inflation. 

And if what the chart signals is accurate, inflation could be coming back in a major way. 

Does Bitcoin Lead Rising And Falling Inflation?

Back in 2020, Bitcoin price set new all-time highs amid a growing inflation hedge narrative and an unprecedented increase in the money supply. Other cryptocurrencies followed.

The idea was that the limited supply of BTC should cause the asset to appreciate against the declining buying power of the dollar. “The fastest horse in the race against inflation” and “gold in the 1970s,” Paul Tudor Jones famously said.

Except the US Federal Reserve began raising interest rates aggressively and a deflationary phase sucked the value out of just about all assets, Bitcoin included. It also managed to slightly tame inflation, which has since come down. 

Not only did pundits claim BTC had failed at being an inflation hedge, they said it was dead (again). Proponents of that narrative ended up with egg on their laser-eyed faces. However, a new chart comparison says that these people weren’t wrong, they were just early, and so was Bitcoin. 

BTCUSD Versus CPI | Source: Elliott Wave International

Crypto Pro Compares BTC Against CPI

In a new chart shared by Elliott Wave International as part of a free video hosted by Crypto Pro Service analyst Tony Carrion, Bitcoin appears to be a leading indicator for inflation. 

Bitcoin rallied ahead of the Consumer Price Index (CPI) increasing by several months to a year. The CPI is a key measure of inflation in the United States.  The top cryptocurrency a

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Author: Tony "The Bull"

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